Rental Property Mortgage in Ontario: Down Payment, Rates and Rental Income Rules
Non-owner-occupied property needs 20% down and prices on the uninsured shelf. How lenders in Ontario treat the rental income is what decides how many you can hold.
Who a rental property mortgage in Ontario covers
- Buyers of a first investment property
- Owners converting a principal residence to a rental
- Investors whose ratios have stopped working at their current lender
What Ontario lenders look for
| 20% down minimum | Default insurance is unavailable on non-owner-occupied property, so this is a hard floor. |
| Rental offset | The lender subtracts a share of the rent — often 50% to 80% — from the property’s costs. Far more generous than add-back and the reason some investors can hold many properties. |
| Rental add-back | The lender adds a share of net rental income to your income instead. Weaker, and it is what most big banks use. |
| Property count limits | Many lenders cap the number of financed properties, commonly at four or five. Beyond that the file moves to alternative or commercial lending. |
Rental Property mortgage rates in Ontario
Rentals price on the uninsured shelf, typically 20 to 40 basis points above owner-occupied. Some lenders add a further rental premium.
What a typical purchase looks like
| Typical price | $759,000 |
| Minimum down payment | $50,900 |
| Land transfer tax | $11,655 |
Averaged across 10 Ontario markets we track. Calculate yours →
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Rental Property mortgages across Ontario
Prices and property tax vary widely inside the province, and both feed your qualification.
| Market | Typical price | Minimum down | |
|---|---|---|---|
| Toronto | $1,058,658 | $80,866 | Affordability → |
| Mississauga | $1,014,120 | $76,412 | Affordability → |
| Brampton | $888,203 | $63,820 | Affordability → |
| Hamilton | $741,172 | $49,117 | Affordability → |
| Ottawa | $683,308 | $43,331 | Affordability → |
| London | $603,006 | $35,301 | Affordability → |
| Kitchener | $706,240 | $45,624 | Affordability → |
| Windsor | $530,000 | $28,000 | Affordability → |
| Oshawa | $693,677 | $44,368 | Affordability → |
| Barrie | $668,083 | $41,808 | Affordability → |
Rental Property mortgage questions for Ontario
How much down do I need?
20% minimum on a non-owner-occupied property, and no exceptions — the insurers will not cover it at any price.
Will the rent help me qualify?
Considerably, but how much depends entirely on whether the lender uses offset or add-back. The same file can pass at one lender and fail at another on this single policy difference, which is the main reason investors use brokers.
What if I move out and rent my current home?
That converts it to a rental for underwriting. If you are keeping it and buying another, both properties get assessed, and the offset-versus-add-back question decides whether the numbers work.
What does it cost to close in Ontario?
Ontario land transfer tax on a $759,000 purchase comes to $11,655, due in cash on closing. Full Ontario closing costs →
Rental Property in Ontario?
Send us the file and a licensed broker comes back with what is realistically available — which lenders will take it, at what rate, and what they will want to see.
